Question
In this published SEC 10-k balance sheet for the FY 2015, Alpha company has the following balances: Preferred Stock, ($100 par value, 5% noncumulative, 50,000
In this published SEC 10-k balance sheet for the FY 2015, Alpha company has the following balances:
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding | $1,000,000 |
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) | $1,000,000 |
Paid-in-capital in excess pf par, common | $150,000 |
Retained Earnings | $700,000 |
The following are related events that occurred during 2016:
January 2, Alpha declared a 5% stock dividend on its common stock when Alphas common stock was trading for $15 per share on that day. Stock dividends were distributed on January 31 to Shareholders as on January 25.
February 29, Alpha reacquired 1,000 shares of common stock for $20 each.
March 31, Alpha reissued 250 shares of treasury stock for $25 each.
July 1, Alpha reissued 500 shared of treasury stock for $16 each
October 1, Alpha declared full year cash dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
December 1, issued 10,000 shares of common stock for equipment with a sticker price of $210,000. Alphas common stock was trading at $22 per share that day.
Net income for 2016 was $275,000.
Use this information to prepare a Stockholders section of a classified balance sheet as of December 31, 2016.
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